Ikeja Electric, Abuja, Benin, Enugu, Ibadan DisCos Top List of Companies Indicted for Electricity Load Rejection

Five electricity distribution companies (DisCos), namely; Ikeja Electric, Abuja, Benin, Enugu and Ibadan DisCos topped the list of power companies indulging in electricity load rejection, by failing to adequately distribute the power supplied by the Transmission Company of Nigeria (TCN), resulting in the recurrent decline in power supply.

The five companies are among power distribution companies still indulging in over-billing of customers by issuing estimated bills rather than supply them with pre- paid meters as directed by the federal government.

This is in spite of the  federal government’s resolve to sanction DisCos or their representatives selling meters or asking electricity users to pay to get the item.

 “We have made it clear through the regulator’s direct order as well as the intervention from the Ministry of Power that these meters are to be provided to Nigerians at no cost.

“Even for meters that will be paid for through the MAP, there is a directive from the regulator to the DisCos that they need to find a way to reimburse citizens over time.
“If we find any DisCo or its representatives selling these meters or exploiting Nigerians to be able to get them, we will sanction such disco”, the government had said.

The Federal Government has always made it clear that power distribution companies have the responsibility of providing meters to customers.

The lack of adequate meters has remained an issue in these regions as these electricity distribution companies are reluctant to meter consumers in their various franchise areas, but instead choose to be over-billing end users by issuing estimated bills.

Recently, the Nigerian Electricity Regulatory Commission (NERC), had announced it would deduct N10,505,286,072 from the annual allowed revenues of the 11 DisCos during the next tariff review as part of sanctions over their non-compliance with the capping of estimated bills for unmetered customers.

In a notice released in Abuja, NERC noted that the billing of unmetered customers in their various franchise areas for 2023 revealed non-compliance with the monthly energy caps issued by the commission.

It said: “The public may recall that in 2020, the commission issued the order on Capping of Estimated Bills (Order No: NERC/197/2020) and subsequently issued monthly energy caps which aimed to align the estimated bills for unmetered customers with the measured consumption of metered customers on the same supply feeder.

“A review of the electricity distribution companies’ billing of unmetered customers for 2023 has revealed non-compliance with the monthly energy caps issued by the commission.”

The Commission  in response to this and in a bid to safeguard unmetered customers from arbitrary billing by Discos, stated that pursuant to Section 34(1)(d) of the Electricity Act 2023, it had issued the order on Non-Compliance with Capping of Estimated Bills (Order No: NERC/2024/004-01 4).

It said the order stipulates the following: “Credit adjustment to customers: Discos are to issue credit adjustments to all over-billed unmetered customers for the period January to September 2023 by the March 2024 billing cycle.

The Discos were directed to publish the list of credit adjustment beneficiaries in two national dailies and on their website not later than March 31, 2024.

Irked by the worsening power supply situation across the countey, the Minister of Power, Adebayo Adelabu, last week, summoned the Chief Executives of Abuja Electricity Distribution Company (AEDC) and Ibadan Electricity Distribution Company (IBEDC), following the deteriorating electricity supply situation in their franchise areas despite improved supply from TCN.

Also, the Managing Director of the Transmission Company of Nigeria (TCN), Alhaji Sule Ahmed Abdulazeez was invited to the meeting.

On Wednesday, the Power Minister vowed that the Federal Government will not hesitate to revoke the licences of DisCos over the worsening power supply in the country.

Adelabu noted that despite the concerted efforts by the ministry to improve the situation,  it’s disheartening that some DisCos are failing to adequately distribute the power supplied by the TCN resulting in the decline in power supply.

“The Ministry has been exerting pressure on the Generating Companies (GENCOs) to enhance their performance, resulting in a recent increase in generation to over 4000MW. Despite this progress, certain distribution companies are failing to adequately distribute the power supplied by TCN, while vandalism of power infrastructure exacerbates the problem in regions such as Abuja, Benin, Port Harcourt, and Ibadan.

 

“Moving forward, I am committed to holding all distribution companies accountable for their performance. Willful non-performance will not be tolerated, and severe consequences, including license revocation, may be imposed. Additionally, I have instructed TCN to prioritize repair works on damaged transmission towers and power lines to improve supply in affected regions.”